By Ronnie Harui
Oil prices surged in Asia on Friday after Israel launched a wide ranging attack on Iran's nuclear facilities, rattling markets and sending investors fleeing into haven assets.
Israel said it struck dozens of targets in Iran, pushing the region toward a new conflict with uncertain consequences.
Iran had said Thursday that it would soon open a third uranium-enrichment site, a major escalation after the International Atomic Energy Agency determined for the first time in two decades that Tehran had failed to comply with its non-proliferation obligations.
Front-month WTI crude oil futures jumped 7.2% to $72.93 a barrel and front-month Brent crude oil futures climbed 7.1% to $74.25 per barrel.
Safe-haven assets such as gold, government bonds, the Japanese yen and the Swiss franc also strengthened as the conflict spurred investors to pare down risk.
"A surge of 1-way volatility to the demise of risk appetite is playing out on reports of Israel's strike on Iran, with traders pushing the yen, Swiss franc and gold higher," Stonex's Matt Simpson said in an email. "Oil prices surged on supply concerns," the senior market analyst added.
Spot gold rose 1.0% to $3,420.58 per troy ounce. The 10-year yield on U.S. Treasurys fell 3 basis points to 4.3268%, while that on Japanese government bonds dropped 6 basis points to 1.395%, and the one on Australian sovereign securities declined 11 basis points to 4.1280%.
The dollar edged down 0.4% to 142.98 yen and was 0.4% lower at 0.8070 against the franc.
Most Asian equity markets weakened, with the Nikkei Stock Average losing 1.5% and South Korea's Kospi index dropping 1.2%.
Write to Ronnie Harui at ronnie.harui@wsj.com
(END) Dow Jones Newswires
June 12, 2025 21:21 ET (01:21 GMT)
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